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Committee advances bill to clarify 'tax incentive' definition for exemption studies
Summary
Senate Bill 2038 would add a statutory definition of “tax incentive” (including deductions, credits and exemptions) so future legislative exemption studies can include all relevant items; the committee recommended the bill for a do-pass vote.
Representative Jared Hegert told the Senate Finance and Tax Committee that Senate Bill 2038 was intended to clarify statutory language so that future interim studies and legislative requests for exemption data would include deductions, credits and exemptions that otherwise could be excluded by the tax department’s narrower interpretation.
Hegert said the change arose during the interim tax committee’s work on exemptions, when the tax department excluded items with identifiers below a reporting threshold because the term “exemption” was not explicitly defined in the subsection being used for data requests. The bill adds the word “incentive” and defines it to include tax deductions, credits and exemptions to avoid similar misunderstandings in the future.
Committee members heard no opposition and moved the bill forward. Senator Dean Rummel made the motion for a do pass recommendation; Senator Whelan seconded and the committee recorded a roll‑call vote in favor. Committee members said the clarification would help future interim committees obtain complete data on state tax incentives.
